Answer:
The difference between the underage cost and the overage cost is $12
Step-by-step explanation:
The underage cost is the cost incurred per unit of unmet demand
So the underage cost = 5-8 = -$3
The overage cost is the cost incurred due to unused inventory = 17-8 = $9
So the difference between the underage and overage cost is = 9 -(-3) = $12